In a major relief to Anil Ambani, the Delhi High Court on Thursday stayed the Insolvency & Bankruptcy Code (IBC) proceedings against the debt-laden industrialist in connection to a personal guarantee given by him against a loan taken by Reliance Communications Ltd (RCom) and Reliance Infratel Ltd (RITL) from State Bank of India (SBI).
Earlier, the Mumbai bench of the National Company Law Tribunal (NCLT) had allowed the initiation of insolvency proceedings against Anil Ambani after the two companies promoted by him failed to pay dues of Rs 1,200 crore borrowed from SBI.
The court restrained Ambani from selling and transferring personal assets.
In 2015, Anil Ambani-promoted RCom and RITL approached the Project Finance Strategic Business Unit of the SBI, and sought two loans of Rs 565 crore, and Rs 635 crore respectively. Ambani gave a personal guarantee equivalent to the loan amount of Rs 1,200 crore, which was disbursed in 2016.
On failure to repay the credit extended to RCom and RITL, the SBI invoked the personal guarantee given by Ambani. However, before the same could be enforced, both his companies were admitted into insolvency on an application moved by Ericsson India Private Limited.
– with ANI input
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